CBO - The S Corporation Association

Ryan Rolls Out New Ways & Means Committee

Main Street business tax treatment was a big theme during the Ways & Means Committee’s first hearing of the year. Its purpose was to look at the state of the economy, but key members kept raising the question of how to best treat pass-through businesses in tax reform. Carrying the flag for S corps was our longtime S-CORP Champion Dave Reichert (R-WA):

Reichert (1:53:00): In another area where we have the ability to boost our economy – through tax reform, as has been mentioned, and which would benefit businesses large and small — what about pass-through businesses…which face a …

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admin2019-02-01T20:00:11+00:00January 16, 2015|

CBO Gets Effective Rate Wrong

February 6, 2014

The tax reform effort may face significant headwinds, but the debate over who pays what continues, with the business community doing a good job of articulating just how much they pay in taxes and entities like the Congressional Budget Office, well, not.

Embedded in yesterday’s economic update is a section entitled “Corporate Income Taxes” that includes a chart showing the effective tax rate of the domestic profits of C corporations declining over time. The effective corporate tax rate was in the 30s during the 1970s, in the 20s during the 1980s and 1990s, but now is down in …

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admin2019-02-01T20:05:25+00:00February 24, 2014|

Entitlement Death Spiral

February 5, 2014

Yesterday’s CBO report has started a firestorm here in DC, with most of it focused on the portion that says Obamacare will result in 2 million fewer workers by the year 2017. That’s certainly an eye-opening number, and it adds to the long list of reasons why the health reform effort is deeply unpopular.

The White House was quick to respond by pointing out that those 2 million lost jobs are the result of workers voluntarily leaving the workforce – rather than employers cutting jobs — but we’re not sure that makes much difference. Either way, the …

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admin2019-02-01T20:05:25+00:00February 24, 2014|

S Corp Meets with House Leadership

S Corporation Association Board Member Dan McGregor participated in a small business roundtable with House Republican leadership yesterday as part of our ongoing effort to educate policymakers on the important role pass-through businesses, and particularly S corporations, play in job creation and investment.

Dan is Chairman of McGregor Metal Working, a group of metal-stamping companies located in the Springfield, Ohio area. It’s been a family-owned business since 1965 and began as an eight-person tool and die shop. Today, they employ 365 workers and have clients in the auto, agriculture, and …

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admin2019-02-01T20:12:05+00:00December 6, 2012|

S-CORP Responds to Washington Post Fact Checker

The art of fact checking had its highs and lows over the course of the last election, but the Washington Post‘s recent review our study by Ernst & Young has to be a new low.

The Post reviewed the study conducted by Ernst & Young looking at the long-term economic effects of higher marginal tax rates on wage and investment income. The study was entitled the “Long-run macroeconomic impact of increasing tax rates on high-income taxpayers in 2013″ and it found that allowing rates to rise to President Obama’s preferred levels would result in lower levels of employment, wages and investment.

This …

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admin2019-02-01T20:12:18+00:00November 19, 2012|